Why Do Frauds Occur?

To most people, Money means many things in life. They toil from dawn to dusk for earning and accumulating wealth. In the process, they fail to care for the vital health by ignoring the food and respite, but pursue all austerities to save the money. Ultimately, they leave an estate without enjoying the life. The heirs bury or burn the corpse, but not the corpus or wealth left by the dead.

The aspirations of the people are varied and infinite. Each person wishes for the possession of plenty of money and power to satiate his/her dreams and desires. It’s a natural characteristic of the human beings, but conspicuous by its absence in the animals or birds. A tiger will not seek a prey when its tummy is full. A crow will not search for food unless it feels hungry. Only the man remains restless due to his ever-growing hunger for money and power. As hard work takes time, he embarks on the illegitimate and short cut methods to reach the goal quickly. Fraud happens to be the easiest mode for all times. Here, the eight major reasons and backgrounds that give rise to the frauds are discussed.

Selfishness remains the chief source of all frauds. When a person indulges in protecting the interests of the kith and kin, he resorts to the fraudulent practices. The head of a varsity reportedly got the post by paying a huge sum to a corrupt political leader. Imagine the fate of the education in that institution.

Non-adherence to the norms leads to the incidence of frauds. Failure to follow the systems and procedures ended in the loss of lives and properties as the greedy officer issued a license for running a school in an unfit building. Substandard weapons were sourced to get personal favors.

Risk prone technology gives scope to commit frauds. The gullible people are cheated by the sophisticated digital methods like phishing, vishing, smishing and skimming. Softwares are used to gather the vital personal information from the vulnerable netizens when the latter log into the Internet.

Negligence causes even an innocent mind to oscillate. Careless handling of documents and disclosure of Credit card and bank details by the account holders result in the siphoning of funds by the fraudsters.

Insider plays the trick. The share prices are boosted artificially when a person of the business manipulates the demand or supply for the stock. The younger brother of a family fabricated a will to deprive his two siblings of the shares in his mother’s estate.

Unreasonable targets breed frauds. The field staff engages the intermediaries and brokers to secure more business by diluting the norms and the purpose. Family planning numbers were achieved by listing the aged and dead.

Imitation effects. People forgetting their capabilities and income level copy the lifestyle of others living in the neighborhood. It is seen as a prestige issue affecting one’s status in the society. To cope with the increased financial needs, an individual resort to heavy borrowing or frauds like misappropriation of office funds and seeking bribes for office work.

Politics pollute the society. To stay in power and fill the coffers of the party, most of the politicians use the corruption and fraud as the major strategy. Money and muscle power dominate not only during the election times, but also when forming the governments. Booth-capturing and casting the fake votes are the usual fraudulent tactics adopted for getting the desired poll results.

Behind all frauds, two aspects are common: the opportunity and desire for getting more of money and power. Every day, frauds do take place at all levels of family, society, business, and government. However, these frauds get exposed certainly and belatedly. Very few people do not succumb to the evils of money and power as they know the real happiness lies in sharing the love and affection.